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‫I'm making the decision to move forward with zero based budgeting.

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‫It's best to have a high level understanding of what it takes to implement this budgeting process.

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‫Now let's remember what zero based budgeting we're starting at ground zero.

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‫So the first step is creating the budget from scratch without using last year's actuals as the baseline.

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‫Think about all the potential costs that can be used in this particular budget, and we'll start writing

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‫line items from there.

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‫Or you can start by even categorizing costs.

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‫Step two is more of the evaluation phase.

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‫Every potential cost within your budget proposal will need to be evaluated so that you can eliminate

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‫unnecessary activities or even reduce activities which may seem redundant.

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‫Step three for every cost that you've identified in your budget proposal, you now need to justify every

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‫component of this particular cost and identify areas that may seem a bit cost effective or relevant,

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‫even items which may seem to be driving the savings.

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‫Make sure you pinpoint those items.

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‫Step four is more of streamlining the process, determining what activities should be performed by what

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‫resources, and thinking about how you can automate these particular activities.

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‫This should be included in your proposal as well.

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‫Step five is all about execution.

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‫Once you've created your proposal and your budget template, it's time to roll off the plan of communication

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‫and the execution process, identifying stakeholders roles and responsibilities.

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‫Now you're ready to implement zero based budgeting, and we'll focus on your proposal and cost estimating

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‫activities and more detail and the upcoming lectures.